Spanish beauty and fashion group Puig has reported net revenues of €1,508 million for 2014, a +4.2% rise (on a like-for-like basis, excluding exchange rate fluctuations). Reported growth was +0.6%.
At €245 million, pre-tax profit was 16% of net revenues, slightly down on 2013. Excluding extraordinary expenses related to the group’s 100th anniversary – celebrated in 2014 – profit before tax would have been €265 million. Net income rose +0.8% to €177 million.
In geographic terms, 14% of revenues were generated in Spain – an increase of +6% – bucking the negative trend of the past few years. 86% of sales were generated outside Spain; 46% of sales were in emerging markets, outside the EU and North America.
Fragrance growth last year was driven by the launch of Valentino Uomo, the continued success of Paco Rabanne’s 1 Million and Invictus, Lady Million Eau My Gold! and 212 VIP Rosé by Carolina Herrera. Brands such as Antonio Banderas (King of Seduction) and Shakira (Rock! by Shakira) bolstered the group’s presence in the masstige category.
In January, Puig acquired Penhaligon’s London and L’Artisan Parfumeur Paris, underlining its commitment to developing the growing luxury fragrances category. In a similar vein, Puig and Shiseido subsidiary BPI recently agreed to bring forward the termination of the Jean Paul Gaultier fragrance license to 1 January 2016, and the acquisition by Puig of the intellectual property rights on Gaultier fragrances and other related assets.
“Jean Paul Gaultier fragrances are distributed in more than 110 countries, with Le Mâle and Classique ranking top in several European countries,” noted Puig in a statement. “The Jean Paul Gaultier fragrance business will represent 10% of the company’s total revenues and is one of the main levers for achieving the desired growth targets.”
Looking ahead, Puig predicts net revenues of €2 billion in 2017 – an increase of +33% compared with 2014. This year it expects to see moderate single-digit growth – slightly higher than the market – driven by new launches such as Nina Ricci’s L’Extase and Paco Rabanne’s Olympéa.
The company’s goal for 2020 is to be number three in the fragrance sector, developing all segments, and in the near future, to lay the foundations for becoming a luxury goods company with owned brands.
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